SEBI probes 2 funds for shorting Adani stocks before Hindenburg

New Delhi (IANS) Adani Group stocks remained steady on Wednesday after the Securities and Exchange Board of India (SEBI) initiated a probe against two foreign portfolio investors, including one accused of allegedly shorting stocks in Adani Group companies prior to a report from Hindenburg Research.

The capital market regulator is seeking explanations from these two separate groups of foreign funds for "possible rule violations".

The group, facing market manipulation allegations, is suspected to have shorted stocks in firms led by billionaire Gautam Adani after getting wind that a short seller report would be published soon, the people said, asking not to be identified as the details are not public.

The people did not name the funds.

The second group of investors faced scrutiny in June 2021 for investing heavily in Adani stocks.

The Adani Group has already denied any association with these funds.

The market regulator will issue a final order in new probes after hearing the funds’ explanations.

The SEBI or Adani Group did not comment on the reports. According to reports, the SEBI has accused the funds of failing to maintain and disclose information about their "ultimate beneficial owners as well as for breaching investment limits in listed entities of Adani Group during certain periods".